Double whammy of Penang’s tunnel and reclamation

ARCHIVES 2013

By admin-s On Oct 15, 2013

(fz.com) – If the trend for sales of new high-end property in Penang is anything to go by, it’s not just locals that the projects are catering for; the units would very likely draw interest of foreigners and speculators who want to make a buck by re-selling at higher prices later.

When Penangites recently woke up to news that the state has sealed a preliminary agreement for a new undersea tunnel and three major roads costing RM6.3 billion, it inevitably stirred a lot of interest over how the projects would impact the local community and landscape.

Stretching some 6.5km, the tunnel would connect Gurney Drive directly to Butterworth, while the highways measuring a total of 20.8km would significantly shorten travel time between key sites on the island.

But there is one important link in this matter that has been overlooked by many.

It has to do with the distinct prospect that this mega project will be tied – financially and functionally – with another one, even more titanic in scale.

This is the Sri Tanjung Pinang Phase II, or STP2 for short, which is nearby around Gurney Drive itself.

Touted to have a whopping gross development value of RM25 billion, it would be one of the biggest single projects, in terms of size and monetary worth, in Malaysia.

The project entails the reclamation of some 891 acres off Gurney Drive – including a 760-acre island plus foreshore reclamation of Gurney Drive itself by 131 acres.

The developer undertaking it, Tanjung Pinang Development Sdn Bhd, is 78.8% owned by E&O Property (Penang) while the Penang government has 21.2%.

Unsurprisingly, there are those who fear that the tunnel would usher unwelcome congestion to the already packed roads of the island, as people with vehicles from the mainland get increasingly drawn in due to the new link.

But the crowd is bound to increase, also because of the sheer number of houses and commercial units intended to be built on the massive STP2 project.

Under the current plan, the STP2 area is targeted to have about 12,000 new homes, in addition to mixed-use commercial spaces – retail units, offices, tourism outlets and so on – occupying some 28.45 million sq ft.